India Globalization Capital, Inc. (IGC) Completes Bridge Financing

BETHESDA, Md., Jan. 11  /PRNewswire-FirstCall/ -- India Globalization Capital, Inc. (Amex: IGC.U, IGC.WS, IGC, "Company") announced that it completed a private placement offering of Secured Promissory Notes ("Notes") for an aggregate principal amount of  $7,275,000.  On December 24, 2007, it consummated the initial closing of the Bridge Offering in the total principal amount of $5,300,000 and on January 10, 2008 it completed the remaining amount.

"This money will allow us to provide down payments towards the purchase of stock in our acquisition targets in India," said Ram Mukunda, IGC's CEO.

Copies of the Form 8-K containing information about the Bridge and other relevant documents, filed by IGC, are available at no charge at the U.S. Securities and Exchange Commission's Internet site (http://www.sec.gov/).

About The Proposed Acquisitions:

"The government of India proposes spending around $475 billion on improving and building infrastructure in India, IGC's capital will enable our infrastructure companies to play a key role in helping build out Indian roads, seaports, airports, rail roads and power," said Ram Mukunda. As announced on September 6, and September 27, 2007, the acquisitions are subject to customary closing conditions.

About IGC

Based in Bethesda, Maryland, IGC is a special purpose acquisition company for the purpose of acquiring, through a merger, capital stock exchange, asset acquisition or other similar business combination, one or more operating businesses with primary operations in India.   IGC raised approximately $67.8 million in gross proceeds through its initial public offering consummated in March 2006 and has dedicated its time since the initial public offering to seeking and evaluating business combination opportunities in India.

Forward-Looking Statements:

This press release may contain forward-looking statements. These statements reflect management's current views and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in these statements. Factors, which could cause actual results to differ, relate to: (i) the ability of the parties to successfully consummate the transactions contemplated by the sale agreements without a purchase price adjustment; (ii) the successful fulfillment (or waiver) of all conditions set forth in the sale agreements; (iii) the successful simultaneous closing of the transactions within the estimated timeframes.  We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. Other factors that could cause or contribute to actual results differing materially from such forward looking statements have been discussed in greater detail in the company's Preliminary Proxy Filing with the SEC. 

DATASOURCE: India Globalization Capital, Inc.



CONTACT:  Ram Mukunda or John Selvaraj of India Globalization Capital,

Inc., [phone]



Web Site:  http://www.indiaglobalcap.com/ 

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